Excess Deposit of TDS--The Remedy

Hi Subodh,

Clearly, an additional Zero was added whilst depositing the TDS onthe net, the client ending up paying 10 times the amount he wasliable to pay! Such are the hazards of online payments.You haven't said which section was the tax paid under—194A, C, H, J,etc? Actually we do have a CBDT circular on this. It was issued wayback in 1980, on October 21. The Circular number is 285. Itmentioned sections 192 to 194D and laid down the procedure for claimof excess TDS deposited by the assessee under any of sectionsfalling between 192 and 194D. Sections requiring TDS on commission(194H), professional payments (194J), Rent (194I), etc weren't invogue back then. But that the circular intended to cover the entiregamut of TDS on payments to residents seems obvious from the mannerin which sections are mentioned—rather than mentioning the sectionsindividually, the Circular gives us the "range" of sections—192 To194D. So relying upon the rule of beneficial construction, I thinkwe can safely extend the application of Circular No 285 to taxwithheld on all kinds of payments made to residents.I quote below relevant paras of the Circular:[1. The Board have been considering the manner of refunding theamount paid in excess of the tax deducted and/or deductible(whichever is more) under sections 192 to 194D of the Income-taxAct. The Board are advised that such excess payment can be refunded,independently of the Income-tax Act, to the person responsible formaking such payment subject to necessary administrative safeguards.3. The excess payment would be the difference between the actualpayment made by the deductor and the tax deducted at source or thatdeductible, whichever is more. This amount should be adjustedagainst the existing tax liability under any of the Direct Tax Acts.After meeting such liability the balance amount, if any, should berefunded to the assessee.5. The adjustment of refund against the existing tax liabilityshould be made in accordance with the present procedure on thesubject. A separate refund voucher to the extent of such liabilityunder each of the direct taxes should be prepared by the Income-taxOfficer in favour of the "income-tax department" and sent to thebank along with the challan of the appropriate type. The amountadjusted and the balance, if any, refunded would be debitable underthe sub-head "Other refunds" below the minor head "Income-tax oncompanies"—major head "020—Corporation Tax" or below the minorhead "Income-tax other than Union Emoluments"—major head "021—Taxeson incomes other than corporation tax" according as the payment hasoriginally credited to the major head "020—Corporation tax" or themajor head "021—Taxes on incomes other than corporation tax".]Thanks,CA Sanjeev Bedi--- In ICAI_CIRC_MEERUT_CA@yahoogroups.com, subodh agrawal wrote:>> One of my clinet has deposited TDS Rs. 70000/- instead of Rs.7000/- in the month of December 2008, Now what remedy is to getrefund of Rs. 63000/- excess deposit of TDS.>  > From CA Subodh Agrawal, Satna>